China’s semiconductor output hits record high in July

China’s integrated circuit (IC) output rose more than 41.3 percent year on year to reach 31.6 billion units in July, a new monthly record, on the back of strong demand for semiconductors and the addition of new production capacity, according to government data, Report informs referring to the South China Morning Post.

The July output was higher than the production of 30.8 billion units reported in June, the National Bureau of Statistics data showed. In the first seven months of the year, China’s total IC output reached a hefty 203.6 billion units, up 47.3 percent compared with the same period a year earlier.

Chip production is a priority in China’s five-year plan as the country braces for a heightened tech war with the US. The robust market demand has also seen semiconductor fabs scrambling to add capacity, and even helped rejuvenate some unfinished projects that were beset by lack of funding.

Huaian Imaging Device Manufacturer Corporation (HiDM), an unfinished fab project in Jiangsu province, was sold for 1.66 billion yuan ($260 million) to state-backed Rongxin Semiconductor (Ningbo) Co. Ltd, in a virtual auction on July 7, which analysts said could set a precedent for restarting bankrupt semiconductor manufacturing projects in China.